11/4/2025
This is a weekly chart of Chipolte Mexican Grill going back 1.5 uyears. This is classic bear market behavior. The stock rises to anew high in June 2024. It falls and recovers, twice. This is called a stair step pattern to the down side. Each rebound causes those long the stock to think the worst is over, the rally has resumed, but it has not. Maximum mood occurs at the END of a move, that happened in the last two weeks. Reports of slowing sales, see today's WSJ, caused many to finally give up and sell at any price, the daily chart shows a gap down in the price, the frop from 40 to 32. One former CMG diner commented in the WSJ article that it is pretty easy to duplicate at home what they sell you in the restaurant, look for more such comments in coming months.
Here is the 20 year view, again is a textbook picture of what happens after a parabolic rise in a stock, it reverses to the downside even faster than it rose. Stock fall 7x times as fast as they rise. This year erased 2-3 years of recent gains.
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